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How to buy a home for pennies on the dollar

By
Real Estate Agent with Brush Real Estate

Everyone wants a great deal....and a great deal on a home is even better...here's a little story about how to be exceptionally happy about the money you save when buying a home.

Just a few months after I graduated High School I had a job, rented a nice apartment...and felt pretty good about myself....I was paying the princely sum of $215 a month for a furnished one-bedroom place in a decent part of town. 

Things were going great until I came back to my parents house and was talking with my dad....that's when I learned that he was paying $160 a month for a house payment on an 1800+ sf ranch style home with a pool, and a a view to die for!!!

It was hard to accept that he could get so much more for so much less....how did that happen??? 

The answer is absolutely simple...12 years...and a lot of inflation....which sounds a lot like what is about to happen once again...just a little word to the wise!

My dad bought his home in 1966...I moved out in 1978...in the twelve intervening years there were two recessions and two periods of high inflation...the house payment that was all he could afford in 1966 became almost a utility bill in 1978.

This whole scenario is about to play itself out one more time....If you're renting right now please think about this.,...there really is a way to pay pennies on the dollar for real estate....it's called buy and hold!

Not too sexy...Not too exciting...but just about guaranteed to work

Don't let the doom and gloomer's get you down...everyone wants to live indoors.,.and always will...it may be difficult to buy right now...but the long term rewards are GREAT!!...sacrifices you make today pay huge dividends in a few years!

 

Posted by

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Brenda Harmon
Century 21 Beal, Inc College Station, Texas - College Station, TX

Bob,

I love this post.  People just are not patient anymore.

While everyone wants a good deal too many people this days are wanting a good steal.

 

Nov 09, 2009 12:39 AM
Nations Trust REO Group
North Miami Beach, FL

Foreclosure home REO

I agree, this is a great post, every time I mention "buying and holding" some people look at me as if I'm CRAZY.

Nov 09, 2009 12:49 AM
Bob Murphy
Keller Williams Realty Consultants - New Albany, IN

Bob - This really is a great post and you left out the tax benefits of home ownership and the fact that one day if you do it right you will not have a house payment (or rent payment) at all.  There can be no doubt that home ownership is the way to go.

Nov 09, 2009 12:54 AM
Bob Davis
Brush Real Estate - Escondido, CA

Brenda and Bob,  Thanks for your comments!  There are so many great reasons to own a home, but it has to be a long term investment...take care!

Nov 09, 2009 01:44 AM
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 www.ReverseLoansInColorado.com

I remember when we bought our first home about 30 years ago, my grandfather was so excited for me... until he found out I was going to buy it with a mortgage. Imagine my surprise, as the thought never occured to me that you might actually buy a house with your own cash. When I tried to explain about the tax advantages of a mortgage, then I was un-American for not wanting to pay my fair share of taxes. Interesting perspective with what's going on now vs his thoughts then, huh??? hmmm... I'm going to ponder that for awhile... I might even do a blog on that, as a matter of fact???

THANKS for the post. You got me thinking!

Nov 09, 2009 09:00 AM
Bob Davis
Brush Real Estate - Escondido, CA

Ruth,

That was a very interesting comment...we're seeing quite a few folks buying homes here for all cash...but until this year it was a very rare event...things have really changed...I remember talking to an older gentleman that bought 100 acres in the area where I grew up...he paid $10,000 for all that...and the seller carried the paper...no such thing as a bank loan for land

Thank you for your comment!!butternut

Nov 09, 2009 10:31 AM